Stock on Focus: AmeriGas Partners LP (APU)

Company Profile:

AmeriGas Partners, L.P. distributes propane and related equipment and supplies in the United States. It serves approximately 2 million residential, commercial, industrial, agricultural, wholesale, and motor fuel customers in 50 states through approximately 2,000 propane distribution locations. The companys propane is used for home heating, water heating, and cooking purposes; to fire furnaces, as a cutting gas, and in other process applications; as a supplemental fuel and motor fuel; and for tobacco curing, chicken brooding, crop drying, and orchard heating applications. It markets propane primarily under the AmeriGas, America’s Propane Company, Heritage Propane, Relationships Matter, and ServiceMark trade names. The company also sells, installs, and services propane appliances, including heating systems; and offers residential heating, ventilation, air conditioning, plumbing, and related services. AmeriGas Partners, L.P. was founded in 1994 and is based in King of Prussia, Pennsylvania.

Recent News:

On Nov. 09, 2016, the company reported GAAP net income attributable to AmeriGas Partnersfor the year ended September 30, 2016 of $207.0 million, compared to net income attributable to AmeriGas Partners of $211.2 million for the year ended September 30, 2015.

On Oct. 27, 2016, The Board of Directors of the company has declared a quarterly partnership distribution of $0.94 per limited partnership unit, payable November 18, 2016 to unitholders of record November 10, 2016.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

APU’s strengths can be seen in its strong growth and better profitability. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 50.20 with positive bias. We rate AmeriGas Partners LP (APU) a STRONG BUY.